There has been a surge in demand for talent in the IT sector post the pandemic. And yes, talented people are being lured by organisations with attractive packages and perks.
A study by Moneycontrol has revealed that CEOs, who used to earn a median annual remuneration of Rs 3.37 a decade ago, now earn Rs 31.5 crore in 2022! That means, the significant IT organisations in India have increased the median annual pay for their CEOs over the years, making it grow a whopping 835 per cent!
However, in sharp contrast, the median annual pay for freshers grew only 45 per cent in the last about ten years. They were earning about Rs 2.45 lakh in 2012, and are now earning Rs 3.55 lakh in 2022.
Clearly, the salaries of CEOs have grown more rapidly than that of freshers in the IT space.
As per Infosys’ annual report, its CEO will earn about Rs 79.75 crore annually in his second term, that is, till 2027, which is 88 per cent more than what he was earning till now. A fresher in the Company, however, will earn about Rs 3.6 lakh a year.
This disparity is attributed to the fact that the salaries of CEOs are linked to ESOPs and profits in many organisations. Therefore, a significant portion of their income comes from exercising these stock options. So, when the profits increase, the incomes are likely to go up too. For freshers, this is not so, because their salaries have no connection to ESOPs.